What is Proficiency?

Definition: Managerial proficiency is the ability of the management to understand the organizational dynamics and run operations smoothly.

What Does Proficiency Mean?

What is the definition of proficiency? Managerial proficiency translates into operational excellence, especially in highly competitive industries such as energy, technology, and the food industry, which all have low barriers to entry. In addition, managing funds and understanding the information provided in the financial statements is critical in managerial decision-making.

A manager must be able to allocate invisible funds (budget) in a way that ensures future profitability for the organization but also to manage cash effectively so that the business’s core operations are properly funded. In this context, managerial proficiency requires a high degree of financial competency.

Let’s look at an example.


Jerry is a manager in a healthcare facility. He holds an MBA with a Finance major and therefore, he is highly proficient in dealing with numbers and understanding financial information. However, managing a healthcare facility is an intricate task. Jerry is able to provide leadership and direction to his team of subordinates and motivate them in delivering improved health services to the facility’s patients. But, he faces a major problem in getting them to understand the diversification of the health care industry.

The healthcare industry is dynamic. Hence, organizations require managers like Jerry to be both managers and leaders in the sense of running the day-to-day operation, but also supervising and coordinating their teams. In doing so, they can meet the organization goals by effectively using the organizational resources and delivering high-quality services to the people in need.

Also, because of the complexity of the industry, managerial positions are found at all organizational levels. Jerry is a middle manager; therefore, he has ears for the requests of the lower managements, but he also endures the pressure of the upper management. To ensure that the power is delegated appropriately, Jerry uses a questionnaire, seeking to determine if his subordinates have a clear goal-setting and are supportive of his managerial decisions.

Summary Definition

Define Proficiencies: Proficiency means the aptitude to adequately performance a task.

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